Chinese authorities are cheering slower capital outflows - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that the Chinese authorities are cheering slower capital outflows, warning of excessive corporate debt and talking of an economy that is getting back on track.

Key Quotes

“The MNI measure of business confidence, however, remained at 49.9. We've seen wilder swings in sentiment regarding the Chinese economy than we've seen in the underlying data, and far wilder swings in policy than we expected over the last year. There's a danger it all goes quiet as policy-makers batten down the hatches and the economy continues its slow, bumpy adjustment.

A softer dollar does however help the PBoC no end, and maybe the clearest sign that we're a long way from any long-term stability comes from the strength of the equity market even if for now that is perceived as evidence that the authorities have the situation under control again.”
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